Estimated reading time 3 minutes, 50 seconds.
Members of the International Aircraft Dealers Association (IADA) report that during 2023 the preowned business aircraft market continued to stabilize, as predicted, per the organization’s fourth quarter 2023 market report.
There was a subtle shift towards becoming a buyers’ market, with higher inventory and more reasonable prices, leading to expectations for a steady start to 2024.
The year-end report combines the qualitative perspectives of members from around the globe, and the quantitative sales data from IADA-accredited dealers and certified brokers, who buy and sell more business aircraft by dollar volume than the rest of the world’s dealers combined. Download the report here.
“IADA members have been predicting a more stable marketplace for over a year, and the 2023 market performed as expected,” said IADA chairman Phil Winters. “Our quantitative and proprietary sales data shows that buyers and sellers are coming together with regard to asking and offering prices, a positive change from the overheated conditions we’ve seen since the onset of the pandemic,” he added.
“While annual business jet resale volume for IADA dealers was about one and a half percent higher in 2023, a more telling statistic showed an increase of 123 agreements to sell exclusively and 149 fewer new acquisition agreements, compared to 2022, reflecting more sellers than buyers,” said IADA executive director Wayne Starling. “Overall, our dealers closed 1,422 preowned biz aircraft transactions in 2023, compared to 1,399 in 2022.”
IADA member survey indicated about three-fourths of respondents say they expect that mid-size and larger jet pricing will fall and that inventories will continue to rise over the next six months. The most pronounced changes likely will occur at the top of the market in the large and ultra-long-range jet category.
A similar pattern is anticipated regarding dealer willingness-to-inventory, with more than half expecting a decrease in willingness in the mid-size and larger jet segments. About 85 per cent of respondents believe that demand across the various aircraft size categories will remain relatively stable to slightly down.
While it was a solid fourth quarter for IADA dealers and brokers with 554 preowned aircraft transactions, supply chains remain problematic. Additionally, some transactions are on hold because of a shortage of parts and lack of pre-buy inspection slots, though the openings are growing. This could affect first quarter transactions.
Projections for the next six months could also be affected by disruptions caused by global unrest, coupled with the traditional uncertainty associated with a U.S. presidential election year.
This press release was prepared and distributed by the International Aircraft Dealers Association.
